The bill mandates the Washington State Office of the Insurance Commissioner to conduct a study on insurance coverage options for projects that develop permanently affordable homeownership units. The study aims to explore various insurance approaches to mitigate costs associated with condominium construction defect liability while ensuring adequate access to insurance. It will involve consultations with nonprofit organizations, government entities, authorized and unauthorized insurers, and representatives from the residential construction industry. The insurance commissioner is required to collect relevant data and findings from past studies and may engage consultants to assist in the analysis. A report detailing the findings, including an actuarial analysis and recommendations for reducing insurance costs, must be submitted to the legislature by December 31, 2026.

Additionally, the bill specifies that funding for the study will come from the insurance commissioner's regulatory account. It defines "permanently affordable homeownership" and outlines the conditions under which these units are sponsored by nonprofit organizations or governmental entities. The bill includes a provision stating that if specific funding for the act is not provided by June 30, 2025, it will become null and void. The section detailing the study will expire on December 31, 2027.